1. Field of the Invention
This specification relates to data processing, and, more particularly, to systems and methods for user churn reporting based on engagement metrics.
2. Description of the Related Art
The concept of “churn rate” has traditionally been used by businesses that provide subscription-based services (e.g., cable television, mobile phone, printed media, etc.). Specifically, the term “churn rate” usually refers to a measure of the number of subscribers that have abandoned a service over a specific period of time. This measure may be useful, for instance, to determine the steady-state level of customers that a subscription-based business is capable of supporting.
In some instances, the churn rate may serve as an indicator of customer dissatisfaction, competition, and/or the service's natural life cycle. As a practical matter, marketing professionals wish to reduce the number of acquired users who may later abandon a promoted product or service. Incidentally, in cases where the product or service is offered as a subscription, a user's abandonment of the service often leaves a clear analytical footprint—e.g., a subscription cancellation request or expiration date.
In these scenarios, churn rate reporting becomes a relatively straight-forward task. For example, a business may determine how many subscribers it has and how many cancellation requests it has received. For sake of illustration, assume that the business has 50 subscribers and that it has received 5 cancellation notices. A simple churn rate metric may thus be calculated as the number of subscription cancellations divided by the number of subscribers—i.e., 10%.